China's July marine fuel exports up 13.22% from June

China's July marine fuel exports up 13.22% from June

Aug 20 (Reuters) - China's exports of very-low-sulphur marine fuel rebounded 13.22% in July versus June as the country's merchandise exports recovered, but still stood nearly 9.69% below the year-ago level, customs data showed on Saturday.

Exports of very-low-sulphur fuel oil (VLSFO), measured mostly by sales from China's bonded storage for vessels plying international routes, were 1.60 million tonnes, data from the General Administration of Customs showed.

That compared to 1.408 million tonnes in June and 1.766 million tonnes a year before.

China's merchandise exports in July grew 18% on the year in the fastest pace this year, an encouraging boost to the economy as its struggles to recover from a COVID-induced slump, but weakening global demand could start to drag on shipments in coming months.

Foreign trade container throughput at eight major Chinese ports rose 14.5% in July, speeding up from the 8.4% growth in June, according to data from China's port association.

But strict COVID measures and rare heatwaves in eastern and southern provinces, where the country's main export hubs are located, crimped factory output, thus constraining shipments.

Weaker-than-expected growth in merchandise imports, up only 2.3% on the year, also capped further growth for the marine fuel.

VLSFO exports for the January-July period reached 10.69 million tonnes, down from 11.52 million tonnes in the same period of last year.

Fuel oil imports into bonded storage, including both high-sulphur and low-sulphur products, fell nearly 57.96% on the year to 0.31 million tonnes.

The table below shows China's fuel oil imports and exports, all in metric tonnes.

The column of exports under bonded storage trade largely captures China's low-sulphur oil bunkering sales along its coast.

Exports

Bonded

y/y pct

storage

change

trade

January

2,329,677

40 February

1,314,684

-3.8 March

1,418,758

-15.5 April

1,217,794

-35.7 May

1,404,540

-9.4 June

1,408,737

-15 July

1,595,021

-9.69 Imports

Ordinary

Bonded

Total

y/y pct

Trade

storage trade

change January

202,456

620,707

823,163

7.2 February

317,825

547,894

865,720

-11.1 March

415,471

560,420

975,892

4.2 April

360,049

346,856

706,906

-20.4 May

531,450

500,452

1,031,902

-2.6 June

191,636

636,042

827,678

-17 July

432,050

307,723

739,773

-45.95
Reporting by Beijing newsroom; Editing by Sam Holmes